News Today: Boosting Economic Confidence: Foreign Direct Investment Growth in Sri Lanka 2025

Sri Lanka has recorded a significant surge in Foreign Direct Investment (FDI) in 2025, signaling strong investor confidence and renewed economic optimism. According to the Board of Investment (BoI), FDI inflows to BoI-approved enterprises reached US$ 827 million during the period from January to September 2025. This represents a remarkable 138 percent increase compared to the same period last year, highlighting the country’s growing attractiveness as an investment destination.

The BoI explained that these investment inflows came from four main sources: equity capital totaling US$ 133 million; reinvested retained earnings of US$ 132 million; intra-company foreign borrowings for investment projects amounting to US$ 231 million; and long-term foreign commercial loans for investments of US$ 331 million.

Of the total inflows, US$ 124 million were secured through new project agreements signed with the BoI in 2025. The remainder came from reinvestments and expansions by existing enterprises, reflecting the continued commitment of current investors to grow their operations in a stable and strengthened business environment.

This impressive FDI performance demonstrates both the growing confidence of new international investors and the sustained commitment of established businesses to expand within Sri Lanka. Experts note that such high levels of foreign investment not only strengthen the country’s economic prospects but also create employment opportunities, improve infrastructure, and enhance the overall competitiveness of local industries.

The BoI emphasized that these results underscore Sri Lanka’s potential as a key investment hub in the region. Government policies supporting ease of doing business, transparent regulatory frameworks, and strategic incentives continue to attract foreign capital, reinforcing the nation’s positive investment outlook for the coming years.